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ACORD - global insurance data standards

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ACORD - global insurance data standards Xchanging Insurance Market Conference November 2008 Roy Laker Business Concerns Realising shareholder value and growth ... – PowerPoint PPT presentation

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Title: ACORD - global insurance data standards


1
ACORD - global insurance data standards
  • Xchanging Insurance Market Conference
  • November 2008
  • Roy Laker

2
Agenda
  • The need for Standards
  • About ACORD
  • Implementation of ACORD Standards
  • Testing and Certification
  • Member Support
  • London Office Blog

3
Business Concerns
  • Realising shareholder value and growth
  • Achieving greater process efficiency
  • Improving service to customer
  • Satisfying authorities
  • Accessing management and risk information
  • Managing legacy systems
  • Addressing the changing competitive landscape

4
Clients / Risk Managers Concerns
  • Insurance Policy
  • Speed and accuracy of insurance quotes
  • Policy issuance
  • Accuracy of understanding insurance requirements
  • Speed of claims payment

5
Proprietary ISLAND
CEO
6
Return on Standards Investment
  • Efficiencies as great as 80
  • Project savings of 20 to 30
  • Reduce integration costs from 23 of new project
    budgets between 14 to 20

Ever increasing incremental cost.
E X P E N S E
CUSTOM
Ever decreasing incremental cost.
STANDARDS
NUMBER OF IMPLEMENTATIONS
Source Celent 2003
7
ACORD Standards
  • What
  • ACORD Insurance data, messaging and process
    standards
  • Set of processing rules and information that
    provide a standard way for communicating
  • Why
  • Standards enable an organisation to link with
    their trading partners to a common electronic
    method
  • How
  • By working with ACORD staff and members to
    develop and implement ACORD standards
  • When
  • Implementations happening today in London, the US
    and continental Europe

8
ACORD
  • Is a member run organisation
  • a not-for-profit, global insurance standards
    organization
  • Members define the standards
  • With advice and guidance from ACORD staff
  • Has nearly 500 worldwide members
  • International organisation

9
ACORD Worldwide Members
  • gt230 Insurance Carriers, Reinsurers, Agents and
    Brokers
  • gt200 Solution Providers
  • 30 Associations
  • Membership Schemes

10
ACORD Standards Domains
Reinsurance and Large Commercial
Life Annuity and Health
ACORD Standards Committee
Board of Directors
Property Casualty and Surety
11
ACORD Standards geographical usage
12
ACORD Standards geographical usage
Life Annuity and Health
13
ACORD Standards geographical usage
Property Casualty and Surety
14
ACORD Standards geographical usage
Reinsurance and Large Commercial
15
RLC Goals Summary
  • To achieve world wide implementation of mature
    ACORD RLC standards
  • Supporting communities of trading partners to
    achieve successful implementations
  • London already has such a community
  • Activity is underway to bring together and extend
    European implementers into a shared community
  • Similar plans are being prepared for North
    American implementers
  • Ensuring effective interoperation with local
    national standards
  • Implementation
  • To support the Acord Standards Framework
  • to enable enterprise level planning and
    management, bringing insurance into line with
    other industries which benefit from far greater
    levels of process standardisation and
    traceability.
  • To support the development of the ACORD Messaging
    Library (AML)
  • The RLC DSC continues to recommend the
    implementation of RLC XML for the foreseeable
    future
  • It recognises the longer-term, strategic value of
    a cross-domain library of messages i.e. AML

Implementation
Implementation
Implementation
Plan for the future
16
THE CHALLENGE The nice thing about standards
is that there are so many of them to choose from
  • Andrew S. Tanenbaum

17
ACORD RLC Global Roadmap
18
RLC Implementations Worldwide London Europe Nor
th America
19
Market Reform Electronic Documents
20
Lloyds A global market
21
London Market - Plans
Paper with London Messages
EDI
Electronic documents with London Messages
EDI
Electronic documents with skinny RLC Messages
XML
Electronic documents with fuller/fat RLC Messages
XML
22
London Implementations
  • London Market standardized on the use of ACORD
    RLC
  • to support its market reform activity.
  • 70,000 ACORD DRI messages per week
  • handled by the Insurers Market Repository.
  • ACORD RLC Placing message is operational
  • between a number of key brokers and underwriters
  • Adoption of the ACORD RLC Technical Account
    message is underway.
  • to support premium transactions
  • Xchanging (the London market centralised back
    office) is introducing an ACORD for All service
  • enable all London Underwriters to receive ACORD
    RLC messages in place of London EDI message.
  • All XML messages are transmitted and received
    using ACORD Messaging Services

23
Insurers Market Repository ECF Volumes
  • All Brokers live
  • 27 Companies live
  • 4 Companies in Implementation process
  • 5 Companies having demonstrations/in start up
    mode
  • All Underwriting Syndicates Live
  • 2007 Average no of ECF claims 4000pm
  • 2008 Average no of ECF claims 14500pm

24
Insurers Market Repository EPA volumes
  • Currently 150 Brokers live
  • Schedule of planned enhancements to EPA
    functionality during 2008 and 2009
  • 135,623 premium transactions submitted by brokers
    electronically during 2007
  • 74 of volume submitted electronically 1st to 3rd
    Qtr 2008
  • Planned transactions by year end 98 of volume

25
RLC in Europe
  • Over 50,000 Accounting Messages p.a.
  • Some Claims
  • Priority is
  • Accounting, settlement and claims (not Placing
    today)
  • Greater volumes
  • Brokers want
  • More Reinsurers
  • More Insurers
  • Reinsurers want
  • More Brokers
  • Ceding Companies

26
RLC in Europe - Rueschlikon
  • Agreement signed in Vienna on 17th September 2008
  • ACORD RLC premium, claims and DRI
  • Running messages over the SWIFT network
  • Partnership between
  • SWIFT, ACORD, Swiss Re, Munich Re, SCOR, Aon,
    Benfield and Willis
  • A shared industry solution for electronic data
    transmission

27
Other key Points
  • Full pricing proposal for pilot in November
  • Validation to be included after June 2009
  • Future phases include
  • Life Reinsurance
  • Pairing
  • Other ACORD standards
  • Settlement netting
  • Risk exposure data

28
North America
  • USA
  • XML is the Standard in the US
  • Moving away from EDI but still being supported
  • E-Reinsure over 500,000 Placing messages to date
  • Need to increase the number of Reinsurance
    implementers and add Ceding companies as message
    senders
  • Bermuda
  • Placing starting to happen from London
  • Accounting implementations
  • Canada
  • Examining the use of claim movement message for
    advices and implementing accounting messages

29
Conclusion
  • ACORD RLC XML standard is mature
  • ACORD RLC standards are a proven solution
  • driving benefits today
  • Vendor partners have matured
  • significantly reduced the barriers to entry
  • reduced the ongoing operational costs
  • Focus is on implementation with more trading
    partners

30
STP
  • Lower Cost
  • Automated Workflow
  • Integrated Systems
  • Reduce Errors
  • Less Translation
  • Better Service
  • More Consistency
  • Higher Quality
  • More Transparency
  • Speed to Market
  • Ease of Doing Business

31
Exposure Data
32
Exposures and binders
  • ACORD working group re-validating 2003 Property
    standard
  • Will also promote usage
  • Verification of Exposure data this year
  • Some pilots of binders this year
  • Lloyds franchise also considering ACORD standard
    as part of regulation

33
Industry Value Chain
34
Testing and Certification Facility
35
Test first with ACORD Testing and Certification
Facility (TCF)
YOU
BUSINESS PARTNER
  • Connectivity
  • Security
  • Standards compliance

And get trouble-free implementation with partners
YOU
BUSINESS PARTNER
36
Testing Certification
  • Over 7,000 messages sent/received
  • All London initiatives supported
  • ECF / AS repository
  • ELPAN2 / EBOT
  • Electronic Placing (direct and via hubs)
  • DRI Large Files (20mb) now supported
  • 1.2Gb files transferred in testing
  • Increasing demand from clients implementors
    encouraged to support ASAP.
  • Digital Signature testing supported
  • Why struggle with counter-parties?
  • TCF provides a neutral, authoritative overview
    which proves your systems capabilities
  • Proven to reduce mean time between bug fixes
  • Avoids you performing diagnostic work /
    consultancy for your competitors

37
(No Transcript)
38
Member Support
39
ACORD Update
  • London Office Blog www.acordlondon.org

40
World Headquarters Two Blue Hill Plaza 3rd
Floor Pearl River, NY 10965 USA
1 845 620 1700

SLIDE 40
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